* FTSEurofirst 300 rises 0.1 pct to 15-month closing high
* Miners gain as copper hits 16-month highs
* Retailers fall, led by Marks & Spencer
By Brian Gorman
LONDON, Jan 6 (Reuters) - European shares edged up to
another 15-month closing high on Wednesday, with miners
gaining, as data suggested economic recovery was continuing,
albeit not dramatically.
The pan-European FTSEurofirst 300 <> index of top
shares rose 0.1 percent to 1,061.57 points, its highest close
since Oct 3, 2008.
The index rose 26 percent last year and has surged more
than 64 percent since hitting a record low last March.
Data on Wednesday the United States showed fewer jobs being
lost, and growth in the services sector.
Miners rose as copper hit 16-month highs, and other metals
gained. A weaker dollar <.DXY> helped to boost prices.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, Lonmin
<LMI.L>, Rio Tinto <RIO.L>, Vedanta <VED.L> and Xstrata <XTA.L>
rose between 1.7 and 3.5 percent.
"The economic recovery is on solid ground and we expect
more tailwind for equity markets from more good economic
numbers," said Tammo Greetfeld, equity strategist at UniCredit
Group.
"Q4 earnings season will provide more tailwinds."
Across Europe, the FTSE 100 <> index and France's CAC
40 <> ended the day 0.1 percent higher; Germany's DAX
<> was flat.
Markets in Finland, Sweden, Austria and Greece were closed
on Wednesday for the Epiphany Holiday.
Greetfeld has a target of 6,500 for the DAX for the first
half of the year, some 7.7 percent up from its current level.
Wall Street was marginally higher around the time European
bourses were closing. The Dow Jones <>, S&P 500 <.SPX> and
Nasdaq Composite <> were up between 0.1 and 0.2 percent.
U.S. private employers shed 84,000 jobs in December, fewer
than the 145,000 jobs lost in November, said the ADP Employer
Services report. But this compared with forecasts for a fall of
73,000. The closely-watched monthly U.S. non-farm payrolls
report is due on Friday.
The U.S. services sector grew in December but at a very
marginal pace. The Institute for Supply Management said its
services index rose to 50.1 in December from 48.7 in November.
[]
MARKS & SPENCER FALLS
British retailer Marks & Spencer <MKS.L> fell 6.8 percent
after reporting sales growth of 0.8 percent for the 13 weeks to
Dec 26, below forecasts. []
Other retailers to suffer included UK supermarket giant
Tesco <TSCO.L>, down 2 percent. Rival J Sainsbury <SBRY.L> fell
0.6 percent, ahead of a trading update on Thursday.
French catering and services group Sodexo <EXHO.PA> rose 4
percent, as its 2.7 percent drop in fiscal first-quarter sales
was not as bad as had been expected. []
Many analysts have warned that the surge in equities cannot
continue.
"Valuations are no longer as compelling," said HSBC equity
strategist Garry Evans in a note. "Historically, the second
year of a bull market never produces as good returns as the
first."
HSBC has cut its rating on Europe ex UK to underweight,
"since the recovery is lagging but the European Central Bank
may raise rates sooner than it should."
HSBC has upped its UK rating to "neutral." It forecasts
that the FTSEurofirst will end 2010 at 1,180, up 11 percent.
(Additional reporting by Joanne Frearson; Editing by **)
